Cell Adverts Solution Sdn Bhd

A Revolution in Mobile Advertising

:: Mobile Advertising Industry outlook

Mobile
Mobile OS Advertising
Advertising Facebook Mobile
market share in market values in
market values in Advertising
Malaysia Malaysia
Asiapac & Japan business
(Gartner) (Gartner)
(GFK Asia)
2012 : 2012 : 14% from
Androids 74% 2010 : RM5.8Bill total revenue
USD$4.3Bill

1Q13 : 30% from

2013 : total revenue
iOS 18% 2011 : RM7.7Bill
USD$4.8Bill
2Q13 : 36% from
total revenue
2014 :
2012 :
Blackberry 6% USD$5.5Bill
RM10.2Bill 3Q13 :44% from
(projected)
total revenue
2016 :
2013 : 4Q13 : 53% from
Others 2% USD$9.5Bill
RM10.8Bill total revenue
(projected)
The Telcos Insight
Local market for voice, data & internet services for 2014 will
IDC increase to RM28.9 Bill from RM27.9Bil in 2013, with CAGR of 3.6%
(2012-2016).

Data & broadband will continue to be key drivers for industry

Group CEO, TM Bhd
growth.

Operators are likely to face more intense margin pressure in

CEO, DiGi.COM Bhd addressing increasing competition and rising cost of operations to
drive mobile internet growth.

High mobile penetration rate (of more than 140%), coupled with
the low population growth of 2% & cannibalisation of voice & sms
revenues by internet communication apps will hamper growth.
CEO, Maxis Bhd Telcos will need to look for ways to increase data ARPU.
This is clearly a very big shift in business model for all operators but
the direction has been known for years, so it is something we are
all in the process of managing.

In line with with global trends, the traditional voice & SMS
CEO, Celcom Axiata
segments will have their margins pressed further while new OTT
Bhd
players will enter the fray as strong challengers to these segments.

Group CEO, REDtone OTT apps such as Whatsapp and Skype will continue to erode the
Int Bhd voice and SMS revenue of mobile operators.
The cause & effect
Traditional telcos business model,
As the which is base on voices & sms, will
Smartphone face deeper cut as smartphones
users keep are becoming more affordable.
increasing
Low ARPU from industry stiff
competition.

Fierce fight to increase no of

subscribers (the only way to
Voice & increase the revenues
SMS
substantially), beside have to
services
delicately manage the churn-out,
shall drop
capital & operating cost.
hurtly
The internet contents and OTT apps
are the key drivers and enjoying
the most benefits out of this no
mercy industry.
SO WHAT IS OUR BUSINESS
OPPORTUNITIES?
:: The Product Concept -
Niche System Solution
Be different and you wont be the
rest.
:: The Business Model

Ad Placement The viewers

The Clients Our Mobile App App subscribers
:: How The Ad works?
:: The Revenue Model

Pay Per Pay Per Viewer Pay Per Action

Impression (PPI) (PPV) (PPA)

Targeted impression
Targeted number of successful sales
regardless of the
unique viewers transaction.
number of viewers.

Target Avrg Revenue

Revenue for every
The rate charges Per User (ARPU) Per
1Mill Subscribers
Month
Range between RM18.00 RM18Mill
6sen to 18sen per RM30.00 per users RM30Mill per
hit-impression. month
:: How To Seduce Mobile Users To
Download the App at their will?
Giving back some from what we earn (as
concept of Sadaqah)

Small value to
give away

Handsomely
reward in return
:: How To Give Back?
The Rewarding Points Giveaway for Free

Redemption Place - mobile

top-up, merchants cash
voucher or even redeem for
cash.
:: The Target Subscribers Early
Adopters

Women
with age 35
& below

Youngsters
between
18-30 y.o.

The Highest
Potential
subscribers
:: The Business Challenge

THE MAIN BUSINESS CHALLENGE IS

NOT TO DEVELOP THE SYSTEM NOR
TO GET THE ADVERTISERS BUT ON
HOW TO GET THE SUBSCRIBERS.
:: Overcome the Challenge
Strategic Partnership
Redemption
goods
available
Ready Big
Hunger for
Mobile Users
new revenues
database

Telco
(Axiata)

Be the OTT Solution

partner with revenue
sharing concept.
:: The Business Value to Telcos

Leverage the current assets &

resources for new wealth creation.

Leverage on current Business creativity through New wealth creation

assets & resources. technology & innovation
:: The Competitive Edge

Offer white label with low investment and fast ROI

High potential business in advertising lavish industry

- with more than RM11billion market values
expected in 2014 with 5%-8% annual growth.

Unique solution and interactive with viewers.

Direct to the eyeball & stay with the subscribers at

anytime, anywhere.

A cash values to the subscribers and value for

money to advertisers.
:: Business Proposition

TO BE COMPANYS SHAREHOLDER
PARTNER OR FORM A COLLABORATION
PARTNERSHIP TO APPROACH AXIATA
GROUP AS OTT SOLUTION PROVIDER WITH
REVENUE SHARING CONCEPT.
:: Lets proceed..

THE BUSINESS PLAN

:: Business Critical Success Factor
Great stakeholders Young Generation :
experiences & value age of 18-30
for money. Woman below 35
Initial market
acceptance

TOP-NOTCH
ACHIEVE FIRST
APPLICATION &
20K
SUPPORT
SUBSCRIBERS
SERVICES

GET THE RIGHT

BRANDING
STRATEGIC
ESTABLISHMENT
PARTNERS

Business longevity Good Promotion &

Revenues generation marketing execution
First revenue
 :: Business Milestone & Exit Plan
AXIATA GROUP & SOUTH EAST ASIA COUNTRIES

Early Celcom XL
Others IPO or M&A
Community Community Community

Subscr 0 20K 1M 2M 5M

Mth 0 4 12 18 24
System finalisation System System Axiata group Malaysia
System launching enhancement launching in South East Asia Indonesia
Roll-out business plan Business roll-out Indonesia. countries.
strategies in Celcom Indonesia
Business proposition to Ready for XL business roll-
Axiata business. out.
Preparing for
next business
level.
.
:: Marketing Plan

THE ENTREE 10K THE ACCEPTANCE 1MILL

App launching Sales & marketing on-
THE BRANDING the-move THE BUSINESS
IM strategy roll-out
Promotion & marketing First revenue generation Axiata partnership
roll-out The rest will be a
Viral marketing roll-out history
Strategic partnership

3K 20K
:: Operation Plan :
Propose Org Structure
Executive
Chairman

PA cum payroll

CEO CFO

Strategic
Head Creative Head Creative Customer
Business R&D Team Finance
Technology Marketing Service
Development

System Support Subscriber Social Network

Admin
Engineer acquisition Support

Sales &
Creative Design
Marketing
:: Financial Plan
Summary Revenues & Subscribers Projection Y1
Items Notes Q1 Q2 Q3 Q4 TOTAL

Subscribers
Projection (accumulative) 7,318 161,665 502,865 1,065,764 1,065,764

Revenue
Mobile Advertising
Pay Per Impression (PPI) - 53,106.23 725,996.60 3,666,837 4,445,939
Pay Per Viewers (PPV) - 58,959.27 270,350.58 617,945 947,255
Pay Per Action (PPA) - 32,735.47 405,525.87 926,918 1,365,179
- -
Total Revenue - 144,800.97 1,401,873.04 5,211,699.71 6,758,374
ARPU - 0.90 2.79 4.89 6.34

Cost of Goods Sold

less: COGS
Ads.Point redemption cost 10% - 20,535.68 140,187.30 521,169.97 681,893
Discount factor / Ad Agencies 12% - 24,642.82 168,224.77 625,403.97 818,272
Revenue sharing with Axiata 30% - 60,151.32 420,561.91 1,563,509.91 2,044,223
Total COGS - 105,329.82 728,973.98 2,710,083.85 3,544,388
-
GROSS PROFIT - 39,471.14 672,899.06 2,501,615.86 3,213,986.06
:: Financial Plan
Summary Operating expenditure (Opex)
Employees & Administration Expenses - -
Employee Expenses
Employee Salaries & Allowances 93,240.00 160,920.00 171,648.00 177,012.00 602,820.00
Employer EPF contribution 9,696.96 16,735.68 17,851.39 18,409.25 62,693.28
Socso 2,237.76 3,862.08 4,119.55 4,248.29 14,467.68
Hospitalisation insurance - - - - -
Sub-total 105,174.72 181,517.76 193,618.94 199,669.54 679,980.96

System Infrastructure, Integration & Development

Rental of Cloud Computing 3,900.00 3,900.00 4,550.00 5,200.00 17,550.00
Rack space rental & Dedicated Internet Access - - - 15,800.00 15,800.00
Sub-total 3,900.00 3,900.00 4,550.00 21,000.00 33,350.00
Travelling & Claims expenses
Parking, toll & outstation 10,500.00 10,500.00 10,500.00 10,500.00 42,000.00
Sub-total 10,500.00 10,500.00 10,500.00 10,500.00 42,000.00
Office Administration Expenses
Office rental 12,960.00 12,960.00 12,960.00 12,960.00 51,840.00
Office Supplies 900.00 900.00 1,080.00 1,080.00 3,960.00
Utilities 4,350.00 4,350.00 4,350.00 4,350.00 17,400.00
Rental of photostat machine 1,080.00 1,080.00 1,080.00 1,080.00 4,320.00
Subscription & Registration 10,000.00 - - - 10,000.00
Sub-total 29,290.00 19,290.00 19,470.00 19,470.00 87,520.00
Miscellaenous Expenses
Entertainment & Beverages 4,500.00 4,500.00 4,500.00 4,500.00 18,000.00
Training & Seminar 4,500.00 4,500.00 4,500.00 4,500.00 18,000.00
Corporate shirt / t-shirt 8,294.00 - - - 8,294.00
Sub-total 17,294.00 9,000.00 9,000.00 9,000.00 44,294.00

Total Employees, Admin & Others Expenses 166,158.72 224,207.76 237,138.94 259,639.54 887,144.96
-
Sales & Marketing Expenses -
Subscribers Acquisition 25,228.83 26,310.57 27,837.84 29,773.18 109,150.41
Marketing Material 12,500.00 2,500.00 5,000.00 2,500.00 22,500.00
Roadshow & Exhibition 3,000.00 3,000.00 6,000.00 3,000.00 15,000.00

Total S&M Expenses 40,728.83 31,810.57 38,837.84 35,273.18 146,650.41

-
TOTAL OPEX 206,887.55 256,018.33 275,976.78 294,912.71 1,033,795.37
:: Financial Plan
Financial Summary & Analysis
Q1 Q2 Q3 Q4

Subscribers projected 7,318 161,665 502,865 1,065,763.97

Revenues - 144,800.97 1,401,873.04 5,211,699.71

Direct Cost (COGS) - 105,329.82 728,973.98 2,710,083.85

GROSS MARGIN 0 39,471.15 672,899.06 2,501,615.86

Operating expenses 206,887.55 256,018.33 275,976.78 294,912.71

EBITDA (206,887.55) (216,547.19) 396,922.28 2,206,703.15

ARPU - 0.90 2.79 4.89

ROI (RM500K
436%
Investment)
:: Financial Plan
Summary Capital expenditure (Capex)

Item Capex Description Qtty Estimated Cost

1 Office Renovation & furniture Lsum 30,000.00
2 Computer, laptop & printer Lsum 28,000.00
3 Miscellalenous Lsum 10,000.00
TOTAL 68,000.00
:: The propose roll-out

Shareholder
Roll-out
As parties show agreement As parties reached a
interest to move mutually terms &
forward To discuss on condition of System launching
shareholders terms shareholder Business roll-out
Business due & conditions.
diligence agreement.

Form XYZ
NDA
company
 End of Proposal

Thank You for Your Attention